Sarfaraz Merchant appears before court in money scam

LONDON: A Magistrate’s Court here has directed Scotland Yard to conclude its investigation about the large amounts of money seized during various raids on the Muttahida Qaumi Movement (MQM)-related properties – totaling around £500,000.
The direction was issued by a judge during the hearing which was attended by Sarfraz Merchant, his lawyer and Scotland Yard officials dealing with the MQM related money laundering cases.
Altaf Hussain, Sarfraz Merchant, Sarfraz Ahmed, Tariq Mir and Iftikhar Quraishi were due to attend the court to answer questions in relation to the nearly half a million Pounds seized from the mentioned individuals. The money laundering investigation had started on 06 December 2012 when the police found nearly £175,000 during a raid on the MQM office while investigating Dr Imran Farooq murder case.
The cash was seized from the house of Altaf Hussain, and Iftikhar Quraishi and Sarfraz Merchant and Tariq Mir were arrested in December 2013 in relation to the money laundering case. The cash was seized by the police under the Proceeds of Crime Act 2002, Section 295.
The “detention and forefeiture of cash” hearing took place in a closed room as the police appealed to the magistrate to conduct the hearing in private due to the “sensitive nature of the investigation”. The police said that it was investigating the case to find “the origins and intended use of the cash”.
Scotland Yard believes that the amounts sized during the investigation are “obtained unlawfully through criminal conduct”. The details of what transpired during the closed door hearing cannot be obtained or produced but this correspondent understands that the Scotland Yard officials told the judge about the development made so far in the investigation and why more time was needed.
It’s understood that the MQM lawyers and the police agreed for extension in time but Sarfaz Merchant opposed this and decided to appear before the judge. Merchant maintains his money was earned through legal means and since it had been seized for more than two years, he needed it back now. Around £25,000 in cash was seized from the flat of Merchant but he says that he has paid nearly half a million Pounds in loans to the MQM-linked accounts through bank transfers.
It’s understood that during the closed door hearing, Merchant recorded his statement before the judge. The judge has directed the police to get all the evidence from Merchant and present it before the court so that a decision could be made.
A source told this correspondent that this will be the last extension that has been granted in this case as far as the seized money is concerned. This means that the police will have to now forefeit the money or release it to the accused.